Average household spending fell a real 0.5 percent in January from a year earlier to 307,952 yen following a 2.1 percent gain in December, the government says in a preliminary report released Thursday.
Average household spending is accepted as an important gauge of personal consumption, which accounts for 60 percent of gross domestic product.
Expenditures on clothing and footwear dropped 8.9 percent for the 17th consecutive year-on-year fall, the Public Management, Home Affairs, Posts and Telecommunications Ministry said.
Entertainment spending dropped 4.2 percent, extending its decline to an 11th straight month. In particular, accommodation expenses plunged 13.1 percent as more consumers refrained from overnight trips.
Food and education costs both dropped 1.2 percent, while spending on health-care and medical treatment declined 4.2 percent.
In contrast, transportation and communications outlays rose 5.1 percent for the fifth consecutive monthly rise, led by an 18.5 percent increase in spending on mobile phones and other communications.
Furniture and household goods spending grew 20.8 percent, reflecting last-minute purchases of refrigerators and other appliances before the enforcement in April of a new recycling law.
Analyzing the findings, a ministry official said, "The level of consumption remains low" due to continued income and employment woes.
As reported earlier, spending by salaried workers' households, which accounts for 60 percent of overall household spending, was almost unchanged in January from a year earlier at an average 333,031 yen following a rise of 0.8 percent in December.
Disposable income fell a real 1.2 percent to 379,012 yen, while the propensity to consume -- the ratio of spending to disposable income -- came to 87.9 percent, up from 86.8 percent a year earlier.
Spending by other households was almost unchanged in the latest reporting month from a year earlier at 271,346 yen.